Home / Business and Economy / Activist Investor Quits Board Race at First Industrial
Activist Investor Quits Board Race at First Industrial
21 Mar
Summary
- Litt will pursue change from outside First Industrial's board.
- Activist alleges ongoing value destruction by current board.
- First Industrial disputes claims, citing strong shareholder returns.
Jonathan Litt, founder of Land & Buildings Investment Management, has withdrawn his nomination for a board seat at First Industrial Realty Trust Inc. Litt stated that he can more effectively advocate for necessary changes from outside the boardroom.
Land & Buildings expressed that urgent changes are needed at First Industrial due to perceived value destruction overseen by the current board. The activist investor is urging shareholders to vote against the reelection of Chairman Matt Dominski and director H. Patrick Hackett Jr. at the upcoming annual meeting.
First Industrial responded by calling Land & Buildings' statements misleading. The company highlighted its total shareholder returns, which it described as superior to peers over one-, three-, and five-year periods. They also pointed to a recently authorized $250 million share repurchase and the planned addition of a new independent director as evidence of their commitment to shareholder value.
The dispute reflects a broader trend of activism in the real estate sector, particularly for companies trading at discounts to their net asset value. Land & Buildings argues that First Industrial's shares undervalue its portfolio and has called for asset sales and capital returns.
